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Trump administration intensifies civil action against Google that Biden’s team started

Trump administration intensifies civil action against Google that Biden’s team started

  • 21.03.2025 05:20
  • washingtonexaminer.com
  • Keywords: No Impact, No Companies

The Trump administration is continuing a legal action against Google, originally initiated by the Biden team, seeking tough remedies including potential divestitures. This reflects Trump's ongoing focus on regulating Big Tech despite his warmer relations with tech leaders.

Alphabet News

Estimated market influence

Context

Analysis of Business Insights and Market Implications

Key Facts and Data Points:

  • Google Payments to Apple: Google pays Apple approximately $10 billion annually to maintain its search engine as the default in Safari browser, found illegal under U.S. competition laws.
  • Court Ruling Timeline: The case was initially brought by the Trump administration in 2020 and is now being pursued by the Biden DOJ with proposed remedies.
  • Proposed Remedies: DOJ sought structural remedies including:
    • Forced divestiture of Google’s Chrome browser.
    • Ban on AI investments (later removed).
  • Market Impact: Meta and other tech companies are shifting policies to align with Trump-friendly directions, such as rolling back DEI programs.

Market Trends and Business Impact:

  • Antitrust Enforcement Continuity: DOJ under Trump is maintaining Biden-era antitrust actions against Big Tech.
  • Regulatory Focus on AI: Trump administration prioritizes U.S. leadership in AI over concerns about regulatory overreach.
  • Potential Breakup Risks: Google faces long-term risks of structural changes, potentially impacting its dominance in search and advertising markets.

Competitive Dynamics:

  • Tech Industry Shifts: Leading tech companies like Meta are altering policies to align with Trump administration priorities.
  • ** DOJ’s Stance**: The agency is signaling a continued tough regulatory approach against Big Tech, setting precedents for other cases.

Strategic Considerations:

  • Political Influence: Tech leaders attending Trump’s inauguration suggest efforts to maintain influence and navigate regulatory challenges.
  • Global AI Race: Trump administration views AI as critical to national competitiveness, particularly after China’s DeepSeek AI gains prominence.

Long-Term Effects and Regulatory Implications:

  • Potential Domino Effect: The case could set a precedent for stricter antitrust enforcement against other tech giants.
  • Investor Uncertainty: Market participants are cautious about the long-term implications of forced divestitures and regulatory actions on tech company valuations.

Conclusion:

The intensifying legal action against Google underscores a broader shift in regulatory focus under Trump’s second term, with significant implications for Big Tech companies. The case highlights the intersection of antitrust enforcement, AI policy, and global competition, potentially reshaping the tech landscape.